/  163

Selected Penalty Provisions—GST/HST and QST

Note

(1) In general, where the amount is no more than seven days late, a penalty of 7% applies. 

Where the amount is between eight and 14 days late, a penalty of 11% applies. In all other 

cases, a 15% penalty applies.

Description

GST/HST Penalty

QST Penalty

Failure to file a return 

by due date

1% of unpaid tax plus 

0.25% per complete 

month (not exceeding 12)  

while the return  

remains outstanding

$25 per day to a 

maximum of $2,500

Failure to remit  

tax by due date

No penalty, interest only

7%–15% of the tax 

payable

1

Failure to provide 

information

$100 for each failure

$100 for each failure

Failure to provide amounts 

as and when required on 

form GST111 (Financial 

Institution GST/HST Annual 

Information Return)

Lesser of: 

• $1,000 and

• 1% of difference between

amounts (or 1% of total 

of tax collectible and ITC 

claimed depending on the 

amount)

Lesser of: 

• $1,000 and

• 1% of difference

between amounts 

(or 1% of total of tax 

collectible and ITC 

claimed depending on 

the amount)

Failure to recapture input 

tax credits as required

5% of amount plus 1%  

per month until amount  

is reported (for a total  

maximum of 10%)

Not applicable

False statement or 

omissions attributable to 

gross negligence

Greater of $250 and 25% 

of the reduction in tax

50% of the tax benefit

Penalties for third  

parties

Greater of $1,000 and  

the lesser of 50% of the  

tax benefit or $100,000  

plus compensation

Greater of $1,000 and  

the lesser of 50% of the 

tax benefit or $100,000  

plus compensation

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Current as of May 3, 2013